Loss Posted At Shell Oil

Published: November 2, 1991

HOUSTON, Nov. 1—
The Shell Oil Company, citing lower oil prices and $90 million in restructuring costs, today reported a $14 million loss for the third quarter.

The loss came on $5.53 billion in revenues and compares with a profit of $227 million, on revenues of $6.2 billion, for the corresponding period a year ago, the company said.

Shell reports no per-share earnings because it is owned by the Royal Dutch/Shell Group.

"The key factor in this decline was significantly lower crude oil prices, which averaged about $5 per barrel lower than in the 1990 period, when crude oil prices increased sharply due to events in the Middle East," said Frank H. Richardson, Shell's president and chief executive.

The company's earnings in oil and gas exploration and production totaled $45 million, down $158 million from a year earlier.

Shell also spent $60 million in restructuring operations at its Wilmington manufacturing plant to prepare for the sale of a large part of it.

Another $30 million in the loss was related to the settlement of charges of price-fixing included in an antitrust lawsuit with Long Beach, Calif. In August, Shell settled its portion of the suit, originally filed in 1975 against several oil companies.

Shell did not admit wrongdoing in the case, said Eydie Pengelly, a spokeswoman.